Portfolio Overview
The Latin America Portfolio currently consists of five positions, four listed on Brazil’s B3 exchange and one on the Mexican Stock Exchange. The portfolio is heavily weighted toward Brazilian equities, reflecting a regional focus that remains appropriate given the portfolio’s mandate.
Recent Performance
- Banco do Brasil (BDORY): +1.25% since pick (7/18/2026). The stock has edged higher amid stable interest rate expectations in Brazil.
- Localiza Rent a Car (LZRFY): -7.71% since pick (6/20/2026). The decline reflects weaker-than-expected car rental demand and higher fleet costs.
- Grupo Aeroportuario del Pacífico (PAC): -0.64% since pick (7/25/2026). Minimal movement in the first few days of holding.
- Smartfit (SFEGY) and Rumo Logística (RUMOF): No price history yet; returns are flat at 0.00%.
Risk Concentration
The portfolio has a pronounced concentration in Brazil (80% of positions) and in cyclical sectors: financials (Banco do Brasil), consumer services (Smartfit, Localiza), industrials (Rumo), and airports (PAC). This concentration increases vulnerability to Brazil-specific economic and political shocks. The 2026 Brazilian presidential election cycle could introduce volatility.
What to Watch
- Brazilian central bank policy and inflation data.
- Corporate earnings reports for Localiza and Banco do Brasil in the coming weeks.
- Mexican peso stability and airport traffic trends for PAC.
Closing Decisions
No positions are recommended for closure this week. All holdings are within their 180-day minimum holding period, and none have experienced thesis-breaking events. The portfolio remains aligned with its Latin America regional mandate.
Risk Disclaimer
This portfolio review is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal. Consider your own risk tolerance and consult a financial advisor before making investment decisions.